For insights into EOS versus the US Dollar and Bitcoin, look no further than this month’s EOS technical analysis. Deciding whether to invest in EOS? Read this first…
EOS Technical Analysis: Introduction
EOS is currently ranked in fourth position by market capitalization on coinmarketcap.com, following the likes of Bitcoin, Ethereum and Ripple. Join us as we take a look at major technical indicators. Let our analysis help you identify the direction of money flow in the crypto space this month.
Monthly Chart of the EOS/USD
The monthly time-frame of EOS still maintains a bearish outlook. It shows clear consecutive bearish closing candlesticks. These bearish closing candles signal bearish accumulation patterns to fuel a continuation of the descent seen in July, September, and October 2018.
At the closing price of January 2019, a more recent bearish accumulation pattern is triggered. This produced a resistance level of 3.050. A price close above this resistance level from this time-frame would signal a change in trend from bearish to bullish.
Weekly Chart of the EOS/USD
The above weekly time-frame of EOSUSD is in a bullish trend. It builds up a triggered double bullish accumulation pattern between January 21st – 28th 2019 and establishes a higher low support level at 2.1906. This was after a breakout of bearish accumulation on December 17th 2018 signaled a trend reversal.
Daily Chart of the EOS/USD
Viewing the pair from a perspective of the daily time-frame, the weekly charts’ double bullish accumulation patterns are illustrated as alternating bullish and bearish divergence signals. You see this on January 22nd 2019, January 28th 2019, and February 8th 2019.
4-Hour Chart of the EOS/USD
From a 4-Hour chart perspective, we get a low-risk entry setup with a high-profit target after a breakout of bearish accumulation was triggered on February 6th 2019 (12:00) and a bullish accumulation on February 8th 2019 (04:00). From the breakout point, the price has so far soared by 29.6%.
Update: 4-Hour Chart of the EOS/USD
Above is an update to the 4-Hour chart of EOSUSD. The last bearish accumulation on February 9th failed to a bullish breakout, signifying a weakness of sellers. A more convincing breakout of bearish accumulation in combination with double bullish accumulation on February 11th 2019 reinforced confidence to enter a long trade, resulting in an 8.4% rally.
Prior to publishing this post, the pair signals a breakdown of hidden bullish accumulation which should serve as early confirmation to a bearish regular divergence pattern. A dead cross of the MACD oscillator serves as further confirmation to entering a short trade.
EOS/BTC Monthly Chart
Paired against Bitcoin, EOS sustained the 2017 bullish rally way into May 2018. Here it finally signaled a bearish inside bar, and subsequently a breakdown of the inside bar on June 2018. The bearish trend was reinforced by the buildup of selling pressure in the form of triple bearish accumulation lasting from August through September and October 2018.
The more recent bearish accumulation pattern triggered on January 2019 is threatened by a breakout of the 0.0007523 resistance level.
EOS/BTC Weekly Chart
A confluence of patterns on different time frames is considered of high probability from our point of view. Such is the bullish regular divergence pattern triggered on December 17th 2018. Moving six weeks further, a double bullish accumulation pattern gets triggered on January 28th 2019. This confirms the bullish campaign.
EOS/BTC 4-Hour Chart
The 4-hour chart lays more emphasis on the bullish nature of the EOSBTC. Starting with a bullish hidden divergence pattern in combination with a breakout of bearish accumulation, and not forgetting the bullish accumulation on February 6th 2019. The buying pressure was overwhelming and worth putting a reasonable investment into. A breakdown of hidden bearish accumulation on February 13th 2019 may also be a good indicator for exiting buy trades.
EOS Technical Analysis: Where Next?
Our analysis brings us to a conclusion that traders and speculators alike are risk-averse towards holding on to Bitcoins. Clearly, they’re moving their money into Altcoins like EOS. We’ll also keep a close eye on the EOSUSD pair from a monthly chart perspective, as a break above the analyzed resistance price level would confirm a change in trend.
Read more from February: Tron Technical Analysis February 2019
Read more from March: Technical Analysis of XLMUSD March 2019